Roadshows for IOC stake sale in Singapore, Dubai

Written by Press Trust of India | New Delhi | Updated: Sep 30 2013, 07:49am hrs
The disinvestment department will embark on a three nation roadshow, including Singapore and Dubai, beginning next month to attract foreign investors for the 10% disinvestment of IOC, estimated to fetch the government over R4,000 crore.

"The roadshows in Singapore, Hong Kong and Dubai to attract foreign investors in Indian Oil Corporation (IOC) will begin from October 6," sources said.

The Cabinet had last month cleared the sale of 10% government stake through the Offer for Sale (OFS) route in IOC.

IOC scrip closed at R211.30, up 1.71% on the BSE. At the current market price, the sale of the 19.16 crore shares would fetch R4,048 crore to the exchequer.

The Centre holds a 78.92% stake in IOC and following divestment, the stake would come down to 68.92%. The disinvestment department has already selected five merchant bankers Citibank, HSBC, UBS Securities, SBI Capital and J M Financial to manage the stake sale of the oil major.

IOC, the nation's largest refiner, has a paid up equity capital of R2,428 crore as on March 31, 2013. It posted a net profit of R5,005 crore in 2012-13, up from R3,954 crore in the previous year.

The company's profit peaked at R10,221 crore in 2009-10. IOC sells fuel at below-market prices, for which it is partially compensated by the government.

It is primarily engaged in refining, transportation and marketing of petroleum products and petrochemicals with an installed refining capacity of 54.2 million metric tonnes.

The company is also now venturing into exploration and production of crude oil and distribution of natural gas. The government's disinvestment target through PSU stake sales in the current financial year is R 40,000 crore. So far it has raised R1,325 crore through disinvestment.